Beginner’s Guide to Crypto Trading Bots — Part 17 — The Futures Bot

The Futures Bot

C.W.Morton

Jun 26, 2024

Source : Straico AI. Prompt : Futures Trading bot

The Futures Bot

Profile
Best for : Bull/Bear Markets
Profit Expectation : High, Short Term
Risk : High (dependent on the chosen crypto itself and amount of leverage used)

Futures bots are designed to use leverage (loans) when executing trades.

In order to increase your profit potential, you take a loan and use that loan to speculate on the future value of a crypto.

This is inherently riskier, because each position is increased by the loan, and if there is negative profitability for a certain timeframe the lender can issue a Margin Call which requires the borrower to add more funds to make up for the loss, or face having their position liquidated. (Loss of original investment).

This also means the bot can wildly profitable. Risk/Reward.

Not advisable for Beginner’s use unless the beginner is already familiarand comfortable with the concept from traditional market experience (stocks).

Futures bots are available outside of the USA on Pionex, KuCoin and ByBit.

Note : There is no futures bot for Pionex.us exchange.

Short Position / “Going Short”

In futures trading, a short refers to a trader selling a futures contract with the intention of buying it back at a lower price in the future, thereby profiting from a decrease in the price of the underlying asset. This is predicated on the expectation that the asset will experience a drop in price.

Long Position / “Going Long”

Going long involves a trader buying a futures contract in anticipation of a price increase, with the goal of profiting from the price appreciation of the underlying asset.

Advantages of a Futures Bot

Exponentially Increase Your Profits: Using leverage, you can earn far more than you can earning on your own balance.

Disadvantages of a Futures Bot

No One Can Actually Predict the Future: The potential for insanely large profits comes with a huge risk : the potential for margin calls.